Brazilian Government will open a “black box” into cryptocurrency projects

Due to the steep fall in the prices of the world’s main cryptocurrencies and the implementation of a strong anti-corruption plan, the administration of Jair Bolsonaro, in office since January 1, 2019, has decided to open a black box of cryptocurrency projects that are being developed in the southern giant.

Although there is no public stance on cryptocurrencies, officials of the new Brazilian cabinet have already made decisions in this regard.

According to some media in Rio, the Brazilian Minister of Women, Family and Human Rights, Damares Alves, suspended a contract for the development of a project that includes the creation of cryptocurrency for indigenous peoples.

Through the agreement, the National Indian Foundation (Funai) of Brazil granted a budget of 44 million reais (11.67 million dollars) to Universidad Ferderal Fluiminense (UFF) for the development of the project.

The aforementioned plan included, among other actions, the “study and diagnosis of socioeconomic feasibility of the creation of an indigenous cryptocurrency; development of the cryptocurrency platform and implementation of the cryptocurrency platform”.

According to the information available, the “Bitcoin del Indio”, as it was nicknamed by the local media, would function as a social cryptocurrency destined to circulate among the Brazilian indigenous population and it was not foreseen that the token would be traded or sold outside of Brazil.

However, the project was vetoed by the new administration considering that, due to its high budget, it had to go through a bidding process and not be awarded directly as it was done.

Until now it is unknown if other projects will be suspended, but what is verifiable is that in the South American nation some plans are underway to control and infringe on the possession of crypto assets.

It is worth remembering that Brazil is the fourth South American country with the largest trading volume in LocalBitcoins, with over 400 BTC (more than 1.5 million dollars) traded in December 2018.